2. Economics
3. there are two buyers zeus and athena and two sellers...

# Question: there are two buyers zeus and athena and two sellers...

###### Question details

There are two buyers (Zeus and Athena) and two sellers (Hermes and Hera) in the market for icecream in a small neighbourhood in Sydney. The weekly individual demands and individual supplies of each seller at different market prices are given in the following tables:

 Market Price Demand of Zeus Demand of Athena Supply of Hermes Supply of Hera $1 10 7 1 1$2 8 6 2 2 $3 5 5 3 2$4 4 3 5 2 $5 1 1 7 3 Assume that the market is perfectly competitive. For each of the following questions, select the correct answer from the dropdown box. (a) If the market price is$2, quantity demanded by the market is equal to

i)2

ii)17

iii)10

iv) 14

units of ice cream

(b) The equilibrium price is

i) $1 ii)$2

iii) $3 iv)$4

v) $5 (c) If the market price is$3, there is a

i) shortage

ii) surplus

of icecream in the market equal to

i) 5

ii) 8

iii) 10

iv) 0

units of ice cream